Location of Repository

Regulating a monopolist with unknown costs and unknown quality capacity

By Charles Blackorby and Dezsö Szalay

Abstract

We study the regulation of a firm with unknown demand and cost information. In contrast to previous studies, we assume demand is influenced by a quality choice, and the firm has private information about its quality capacity in addition to its cost. Under natural conditions, asymmetric information about the quality capacity is irrelevant. The optimal pricing is weakly above marginal costs for all types and no type is excluded

Topics: HF
Publisher: University of Warwick, Department of Economics
Year: 2008
OAI identifier: oai:wrap.warwick.ac.uk:1358

Suggested articles

Preview

Citations

  1. (1971). An exploration of the Theory of Optimal Taxation, doi
  2. (2005). An Optimal Auction for Capacitated Bidders - a Network Perspective”, mimeo
  3. (1991). Game Theory, doi
  4. (1997). Information and Incentives: The Economics of Carrots and Sticks, doi
  5. (1978). Minimizing a Submodular function on a Lattice, doi
  6. (1999). Multi-dimensional Screening: A User’s Guide”, doi
  7. (1988). Multidimensional Incentive Compatibility and Mechanism Design”, doi
  8. (1999). Multidimensional Mechanism Design for Auctions with Externalities”, doi
  9. (1996). Multiproduct Nonlinear Pricing”, doi
  10. (1993). Nonlinear Pricing Oxford doi
  11. (1999). Oligopoly Pricing: Old Ideas and New Tools
  12. (2005). Optimal Auctions for Asymmetrically Budget Constrained Bidders”, mimeo doi
  13. (1987). Optimal Nonlinear Pricing with TwoDimensional Characteristics”,
  14. (2006). Optimal Procurement Mechanisms for Divisible Goods with Capacitated Suppliers” working paper doi
  15. (1997). Optimal Provision of Quality and Warranties: An Exploration in the Theory of Multidimensional Screening, doi
  16. (1999). Optimal Regulation with Unknown Demand and Cost Functions”, doi
  17. (1982). Regulating a Monopolist with Unknown Costs”, doi
  18. (1988). Regulating a Monopolist with Unknown Demand and Cost Function”, doi
  19. (1998). Standard Auctions with Financially Constrained Bidders”, doi
  20. (1998). Sweeping, doi
  21. (2006). Taxes and Employment Subsidies in Optimal Redistribution Programs ”, doi
  22. (2003). The Economics of Multidimensional Screening” doi
  23. (2000). The Optimal Mechanism for Selling to a Budget-Constrained Buyer”, doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.